Why analysts are bullish after Bitcoin’s just saw an explosive 10% surge to $7,400

Over the past few days, bullish pressure has been building for Bitcoin; all throughout the last two weeks, the cryptocurrency has been forming an uptrend, registering a consistent series of higher lows and higher highs.

On Apr. 6, this streak of strength culminated in an ongoing explosion higher for BTC, which just minutes ago forced Bitcoin to $7,450 — the highest price since the Mar. 12 crash. With this price action, the cryptocurrency is up 10 percent on the day — a stellar performance that comes as stocks, gold, and commodities saw similarly bullish moves higher.

bitcoin price
Bitcoin price (Source: TradingView)

Data from Skew.com indicates that approximately $20 million worth of BitMEX short positions were liquidated amid this move higher.

What’s next for Bitcoin?

Although still moving, analysts are growing increasingly bullish on the cryptocurrency, citing technical trends playing out for the asset.

Bloomberg wrote last week that Bitcoin’s recent move higher has allowed it to trigger a “positive divergence and a buy signal,” according to the indicator the DVAN Buying and Selling Pressure Gauge.

DVAN buying/selling gauge shows Bitcoin could trigger buy signal

BTC last saw this trend in January, prior to the 50 percent surge from $7,000 to $10,500. The same indicator also flipped bearish when BTC fell under $10,000 in the middle of February, adding credence to the recent signal.

Furthermore, the recent rally has allowed Bitcoin to push the price at which it opened 2020, which means the cryptocurrency is finally positive on the year. Although seemingly irrelevant, many crypto traders have branded this occurrence “bullish.” Indeed, 2017’s yearly close of $13,800 marked the exact top of 2019’s bull run.

Not to mention, analysis from Willy Woo, a noted on-chain analyst and an ex-partner at the now-shutdown Adaptive Capital, found that there’s a high likelihood Bitcoin established a macro price bottom in March when it fell to $3,800.

Data metrics surrounding Bitcoin’s miner dynamics all point to a long-term bottom
Related: Data metrics surrounding Bitcoin’s miner dynamics all point to a long-term bottom

Not out of the woods just yet

Although there is bubbling bullish sentiment, it’s important to accentuate that Bitcoin is not yet out of the woods.

Trader “Filb FIlb” — known for accurately predicting Bitcoin’s price action in Q4 2019 and January almost down to the exact dollar moves — noted in a TradingView update nearly two weeks ago that at $8,000 lies a nasty cluster of technical resistance. In fact, the pseudonymous trader explained that $8,000 likely has the “worst cluster of resistance seen since the bear market of 2018.”

Indeed, his chart indicates that around this level lies the following:

  • The 20-month simple moving average
  • The 50-day, 100-day, and 200-day simple moving averages
  • The 61.8 percent Fibonacci Retracement of the February top to March bottom.
  • A yearly pivot level.

To convince bulls that it is heading back into a bull market, the crypto will need to surmount this cluster.

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Even after the 50% crash, this Bloomberg analyst thinks Bitcoin is bullish: here’s why

It would be fair to say that Bitcoin didn’t perform too well in March. For those who have been living under a rock, the cryptocurrency shed more than 50 percent of its value on Mar. 12 and 13, plunging from a price just shy of $8,000 to lows at $3,800 in a dramatic fashion, liquidating over $1 billion worth of long positions in the process.

Even after the recent recovery we’ve seen, Bitcoin remains 51 percent lower than the $13,800 high seen at the end of June in 2019, which many thought would kickstart the next parabolic growth phase for our favorite orange coin.

With that in mind, the obvious answer to the question “Is Bitcoin in a bull or bear market?” is seemingly the latter, the bear market option.

Though, according to a top Bloomberg analyst, Mike McGlone of the commodities desk, the asset is actually in a “consolidating bull market” rather than a full-blown bear market, similar to the one seen in 2018.

Here are four reasons why he thinks so.

Reason #1: Growing futures volume & options trading suggests “more mainstream adoption”

Despite the recent decline in volumes seen in the Bitcoin futures market, McGlone suggested that the “advent of listed futures” and options trading, which have been adopted as evident by the open interest and volume metrics, are “key for the nascent digital asset with limited supply.”

He added that due to the nature of futures, these derivatives are likely to “pressuring volatility [lower]” while “buoying prices,” as the increased demand for the scarce asset is likely to increase its price just going off simple supply-demand dynamics. As McGlone wrote:

“Limited supply points to demand and adoption as the primary price determinants for the benchmark crypto.”

Furthermore, with the Bitcoin price stabilizing at the 30-day average of the futures volume (Bloomberg data), McGlone’s desk believes the asset remains in a “consolidating bull market,” presumably citing the oft-held sentiment that consolidation precedes expansion.

Courtesy of Bloomberg’s report

Reason #2: Bitcoin on-chain indicators remain “price supportive”

Corroborating the broader narrative of increased adoption, Bloomberg observed that the on-chain metrics of the Bitcoin network remain “price supportive,” despite the coronavirus outbreak. The outlet wrote:

“Bitcoin appears to be discounted vs. its primary on-chain indicators. Representing adoption, the 30-day average of active addresses has stabilized closer to $9,000 vs. about $6,600 on April 2.”

McGlone elaborated that with increasing adoption, Bitcoin is starting a transition process to become a “digital version of gold.”

Notably, CryptoSlate’s analysis found that there is similar strength on the side of Ethereum, which has also seen some strong on-chain metric readings over recent days.

Volatility strikes back, but on-chain metrics reveal strong resistance ahead of Ethereum
Related: Volatility strikes back, but on-chain metrics reveal strong resistance ahead of Ethereum

Reason #3: Crypto is outperforming equities from a quarterly perspective, showing “divergent strength” 

McGlone then highlighted the fact that Bitcoin (and gold) is actually outperforming equities and other traditional assets from a quarterly perspective, which suggests they are on the “back ends of a significant shakeout.”

They added that with Bitcoin down only about “5 percent in 2020 vs. almost 22 percent for the S&P 500,” they’re starting to see the cryptocurrency is in the midst of “diverging strength,” indicating of a move towards “gold-like adoption, maturity, and performance.”

Reason #4: Macroeconomic conditions favor gold

All these mentions of Bitcoin becoming a gold-like asset are important, for one of the key narrative underpinning the Bloomberg report is that the macroeconomic conditions are favoring the precious metal, and should thus benefit BTC too.

As CryptoSlate has detailed heavily over the past few weeks, negative interest rates and the so-called “QE infinity” policy on behalf of the Federal Reserve are two macro factors that are likely to benefit scarce assets.

Indeed, the analyst wrote that with monetary factors trending towards debasement and a potential devaluing of the world’s reserve currencies, his desk sees gold extending towards its all-time high of $1,900.

This, in turn, could benefit Bitcoin, which Bloomberg confirmed is starting to correlate with the precious metal.

Indeed, Dan Morehead — founder of blockchain-focused fund Pantera Capital — wrote in a newsletter published late last month that monetary policy is likely to allow Bitcoin to set a new record above $20,000 in the coming 12 months:

“As governments increase the quantity of paper money, it takes more pieces of paper money to buy things that have fixed quantities, like stocks and real estate, above where they would settle absent an increase in the amount of money. The corollary is they’ll also inflate the price of other things, like gold, bitcoin, and other cryptocurrencies.”

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Model that predicts 1,300% Bitcoin price rally after halving “fortified” by new report

If you have followed the Bitcoin market for any stretch of time, you likely know of PlanB, a pseudonymous quantitative analyst that has garnered immense clout in the crypto-asset space. His claim to fame is an econometric model predicting a $100,000 Bitcoin price in the coming years.

While many have laughed off this predicted price as pure “hopium,” there are signs that model holds water, so to say, with a report confirming that the model is not a coincidence.

What’s PlanB’s Bitcoin price model?

First, a bit of background: in March 2019, a pseudonymous analyst named PlanB released an article entitled “Modelling Bitcoin’s Value with Scarcity.” 

The meat of the work came down to the below image shared near the end, showing that Bitcoin’s scarcity — apparently best represented by the ratio between its above-ground supply and yearly inflation rate, the so-called stock-to-flow ratio — is correlated with the network value of the asset.

Bitcoin stock to flow

In fact, PlanB found that per his logarithmic regression, Bitcoin’s value exponentially increases the more scarce BTC gets. The model, for instance, predicts that after the May 2020 block reward halving, the fair value of the Bitcoin network will rise to $1 trillion to $2 trillion, which is about $55,000 to $110,000 per coin.

What’s especially interesting about the regression is that as of PlanB’s original iteration, it has an R squared of 94.7 percent.

Report corroborates model

Although already proven to be historically accurate through the R squared, the model gained even more weight just recently, with reports confirming that the regression model relationship between Bitcoin’s scarcity and its price is “not spurious.”

Sharing the reports in an extensive thread, a Twitter user going by “Dilution Proof” went as far as to say the “staggering” reports “fortify” the model.

The reports, of which there are many, used multiple methods of statistical analysis to determine that the model objectively is cointegrated with the price of Bitcoin, rather than it tracing BTC by pure coincidence. As an analyst confirmed in the reports:

“All of them fail to reject the hypothesis that stock-to-flow is an important non-spurious predictor for the value of Bitcoin. […] We can see stock to flow has a significant long run influence on price.”

Bitcoin distributed law model

Importantly, the report concluded that the model has a long-term impact, meaning that BItcoin will not rally to $100,000 immediately after the halving transpires next month.

Despite the evidence corroborating the model, Dilution Proof’s thread actually sparked discourse around the model yet again, with one commentator remarking that the model still makes no sense as the halvings are a sample size of two. That comment has since been deleted.

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What’s Next For Bitcoin Price After It Just Reclaimed $7,300?

Somehow, someway, the price of Bitcoin has continued to show resilience after March 12’s capitulation event, decisively retaking $7,300 just minutes ago after trying an failing to surmount this level multiple times over the past few days. As of the time of this article’s writing, BTC is trading at $7,295, up 8% from the session open and up over 20% since last week’s lows under $5,900.   Bitcoin’s latest bout of strength comes as the stock market has managed to mount a strong comeback, despite the coronavirus outbreak and economic conditions continue to weaken on the weekend, epitomized by the 6.6 million jobless claims in the U.S. alone last week. What’s Next For Bitcoin? With the recent price action, which has meant that Bitcoin has almost fully retraced the crash on March 12th, analysts have become increasingly bullish. Bloomberg wrote last week that Bitcoin’s recent move higher has allowed it to trigger a “positive divergence and a buy signal,” according to the indicator the DVAN Buying and Selling Pressure Gauge. BTC last saw this trend in January, prior to the 50% surge from $7,000 to $10,500. The same indicator also flipped bearish when BTC fell under $10,000 in the middle of February, adding credence to the recent signal. Bitcoin analyst Filb Filb — who accurately predicted the trajectory of BTC (down to the $) in Q4 2019 and January 2020 — wrote in his Telegram channel that his personal indicator suggests “we are good on trend and volume,” adding that a simple technical analysis of the chart implies a rally to $8,150 in the coming days. $8,150 is nearly 15% higher than the current market price. The optimism has been echoed by others. Per previous reports from NewsBTC, on-chain analyst Willy Woo found that mining indicators suggest the Bitcoin bottom is in, meaning the cryptocurrency could soon enter back into a bull run. Woo cited two indicators to convey his point: The Hash Ribbons, the moving averages of the Bitcoin network’s hash rate, have started to recover, which is a “reliable” signal of a bottom, the analyst wrote.  The last time the Hash Ribbons looked similar to as they do now was in December 2019, at the $6,400 bottom, and in December 2018, the $3,150 bottom. The Miners Energy Ratio, “the ratio between Bitcoin’s market cap to its energy consumption, is in the buy zone.” This comes briefly after the metric entered the “extreme buy zone” in mid-March, which was last seen prior to the 4,000% rally from $500 to $20,000. Featured Image from Shutterstock

Ethereum Explodes 15% Higher: What’s Behind The Sudden Surge?

Bitcoin often leads the crypto market, but all eyes seem to be on Ethereum at the moment; in the past day, since Monday’s candle open at $142, the second-largest digital asset has rocketed 13% higher, reaching $165 just minutes ago as of the time of this article’s writing. This is the highest price ETH has traded at since March’s capitulation event, and 86% higher than the $90 bottom established on that day. This explosive move higher has liquidated over $1.6 million worth of short positions on BitMEX, according to data from derivatives tracker Skew.com, with thousands of dollars more of liquidations being reported each and every minute. While $1.6 million may not sound like much, it represents a good portion of the exchange’s Ethereum market, which is much less liquid than its Bitcoin counterpart. With ETH strongly outperforming Bitcoin, many have been wondering what is behind this trend; data shows that there is a confluence of answers. What’s Behind Ethereum’s Explosive Price Action? Ethereum’s explosive move can be attributed to a number of market trends: Investors are longing ETH: Since the start of the day, U.S. dollar-denominated open interest in the Ethereum contract has risen from $43 million to $67 million now, according to Skew.com data. This indicates that investors are starting to open long positions in response to the move, further pressuring the price higher. Ethereum is catching up to Bitcoin: During March 12’s capitulation crash, Ethereum strongly underperformed Bitcoin, falling from $200 to a low of $89 within 24 hours’ time, which was more than 50%. The recent rally is likely ETH catching up to Bitcoin, which has nearly recovered all of the March 12th crash. A key technical analysis factor is playing out: Finally, as reported by NewsBTC previously, Ethereum has broken out of an ascending triangle pattern, which more often than not results in further upside for the asset involved. Josh Olszewicz, a prominent cryptocurrency analyst who identified this pattern, explained that the recent breakout gives ETH a target of $200, which could be claimed within the next two days. Featured Image from Shutterstock

South Korea Launches Digital Currency Intiative as BIS Expects CBDC Adoption

South Korea

Over the past few months, there’s been a growing buzz about central bank digital currencies or centralized cryptocurrencies; responding to China’s efforts to digitize the yuan and the launch of Libra by Facebook and the world’s top Silicon Valley firms, the governments and monetary authorities of the world’s nations have mobilized to try and take some of the digital payment pie for themselves.

It seems South Korea is now joining the rat race.

South Korea Joins the Digital Currency Rat Race

On Monday, South Korea’s central bank, the Bank of Korea, revealed that it has launched a pilot program for testing a digital won, which is slated to run to December 2021. A release outlining this move said the program will determine if there are a legal case and ample technical capability to launch a digital currency in South Korea.

According to Yonhap, which translated the press release, The Bank of Korea doesn’t see an immediate need for a central bank digital currency (CBDC) but needs to be prepared should “market conditions” change:

The need to issue a CBDC in the near future still remains slim when considering the demand for cash that still exists, the competitive payment service market and high level financial inclusion, but there is a need to be able to quickly take steps in case market conditions at home and abroad change rapidly.

The program will purportedly have five stages, the last of which will be a full-scale pilot rollout in 2021. It isn’t clear who or what companies this stage would involve.

There’s Competition

This comes shortly after France’s central bank revealed it is moving towards launching a digital currency experiment, seemingly a response to the Banque de France’s governor who said late last year and this year that France should have its own CBDC.

The experiment will purportedly identify the benefits and risks of a CBDC in France, with a document specifically citing how it could result in productivity gains for the financial sector and the broader economy.

Despite these efforts, China still seems to be ahead in the digital currency rat race. Per previous reports from Blockonomi, The Global Times, effectively a Chinese state-run media outlet, reported that insiders say China’s central bank is “one step closer to issuing its official digital currency.”

The outlet’s sources explained that the PBOC and private companies — purported to include China’s largest banks and telecom and tech companies — have “completed development of the sovereign digital currency’s basic function and is now drafting relevant laws to pave the way for its circulation.”

The Global Times chalked up the speed of development to the potential integration of monetary policies, such as negative interest rates, into the Chinese economy should the monetary and fiscal situation continue to develop poorly.

BIS Expects Accelerated Digital Currency Adoption

The timing of all these projects is quite auspicious.

According to an April 3rd bulletin from the Bank of International Settlements — the so-called “central bank of central banks” — the outbreak of the coronavirus across the world has accelerated the public’s distaste for cash, which was already taking place as digital systems like WeChat Pay (China), Google Pay (Western world), etc. have started to crop up.

The outbreak may result in growth in the need for central bank digital currencies, which of course cannot be infected by the coronavirus, which has purportedly been found to stick on surfaces:

Resilient and accessible central bank operated payment infrastructures could quickly become more prominent, including retail central bank digital currencies (CBDCs).The pandemic may hence put calls for CBDCs into sharper focus, highlighting the value of having access to diverse means of payments, and the need for any means of payments to be resilient against a broad range of threats.

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Bitcoin Retakes $7,000 as Stock Market Continues to Mount Comeback

Bitcoin Price

Somehow, someway, the price of Bitcoin has continued to show resilience after March 12’s capitulation event, decisively retaking $7,000 on Monday morning after trying (and failing) to surmount this level three times in the past week.

Now, the cryptocurrency trades at $7,100, up 5% in the past day and up 20% since last week’s lows at just under $5,900.

The cryptocurrency ‘s latest bout of strength comes as the stock market has managed to mount a strong comeback, despite the coronavirus outbreak and economic conditions continue to weaken on the weekend, epitomized by the 6.6 million jobless claims in the U.S. alone last week.

Thus far, the S&P 500 is up 5% since the Monday morning open, which is, of course, how much Bitcoin is up during Monday’s session.

Analysts Expect Bitcoin to Rally Further

The recent strength in the crypto market has convinced many that Bitcoin is ready to extend its gains even higher, despite the feelings of unease that may remain from when BTC crashed 50% in a 24-hour time period.

Bloomberg wrote last week that Bitcoin’s recent move higher has allowed it to trigger a “positive divergence and a buy signal,” according to the indicator the DVAN Buying and Selling Pressure Gauge. BTC last saw this trend in January, prior to the 50% surge from $7,000 to $10,500. The same indicator also flipped bearish when BTC fell under $10,000 in the middle of February, adding credence to the recent signal.

The call for upside has been echoed by individual crypto traders.

Bitcoin analyst Filb Filb — who accurately predicted the trajectory of BTC (down to the $) in Q4 2019 and January 2020 — wrote in his Telegram channel that his personal indicator suggests “we are good on trend and volume,” adding that a simple technical analysis of the chart implies a rally to $8,150 in the coming days. $8,150 is nearly 15% higher than the current market price.

To add to this, analysts have observed a clear increase in consumers’ interest in buying Bitcoin over recent weeks, epitomized by the Coinbase report reported on by Blockonomi previously. The leading exchange wrote last week:

“But beyond just a rush, two things are clear: customers of our retail brokerage were buyers during the drop, and Bitcoin was the clear favorite. Our customers typically buy 60% more than they sell but during the crash this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto assets even during extreme volatility.”

Top Fund Manager Predicts Secondary Stock Market Crash

The short-term outlook for Bitcoin seems to be strong, but a top Wall Street investor is worried about a secondary stock market crash, which could adversely affect all capital markets, gold and crypto-assets included.

Guggenheim’s chief investment officer, Minerd, explained in a note published April 5th that the stock market could drop another 40% from where it is now:

We need to see the other shoe drop. When the markets start to see some of the data on unemployment rising and economic growth and corporate earnings contracting, there will be another level of panic.

Indeed, with GDP undoubtedly slowing down and unemployment on the rise, the chance of another downturn in the stock market after the 25% rebound seems to be growing.

While Bitcoin may be deviating from stocks as it stands, analysts agree that another capitulation event in the stock market would trigger another rush for dollar liquidity, which would even push BTC and gold lower as institutions rush to de-risk their portfolios.

Long-Term Outlook

Whether or not Bitcoin continues higher or lower in the short term, the long-term outlook continues to shape up for this nascent asset class.

Anthony Pompliano, a partner at crypto fund Morgan Creek Digital, made that abundantly clear in a recent interview with a leading precious metal news outlet and retailer, Kitco.

He said to the outlet that despite the recent drawdown, Bitcoin is still on track to “rally hundreds of percent” to $100,000 in the coming years. The exact prediction is $100,000 by December 2021, just over eighteen months from now.

Pompliano cited the trend amongst central banks and governments to continue to print money like there’s no tomorrow, coupled with the impending arrival of May’s halving. These factors, Pompliano explained, will work in tandem to increase the demand of Bitcoin in a time when the scarcity of the cryptocurrency increases, resulting in a simultaneous positive demand shock and negative supply shock.

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Why crypto? U.S. bank forcefully closed due to “longstanding capital” issues

Some say the timing was coincidental, but Bitcoin and the entire crypto ecosystem was born seemingly in response to the issues in traditional finance exposed by the 2008’s Great Recession, during which banks holding billions of dollars started to collapse.

Case in point: in the first-ever block of the network, its pseudonymous creator Satoshi Nakamoto embedded the following text into the first block: “Chancellor on brink of second bailout for banks,” a reference to a The Times headline from the morning the block was mined.

As the coronavirus has ravaged the global economy, bailouts have begun yet again as cracks have appear in institutions, leaving many to suggest that Bitcoin will “come of age” in this crisis, as put best by Dan Morehead of Pantera Capital.

U.S. bank fails

Per a report from American Banker published late last week, the Federal Deposit Insurance Corporation (FDIC) has announced the closure of The First State Bank of Barboursville in West Virginia. The bank held $152 million in assets and had four branches, which have been acquired by another local institution.

The FDIC indicated that The First State Bank has “experienced longstanding capital and asset quality issues, operating with financial difficulties since 2015.” The institution also purportedly had capital levels that were too low according to state and federal laws. It also indicated it will be directing a $46.8 million bailout, which will make up for the shortfall.

Although there are no signs that there will be a cascade of closures of larger U.S. banks caused by the coronavirus outbreak or other triggers, many in the Bitcoin space have taken this news.

Prominent Bitcoin commentator Dennis Parker remarked “Here we go” in response to the news, while VanEck’s digital asset director, Gabor Gurbacs explained that investors should expect “smaller regional bank closures in cash-heavy states” as individuals try and hoard cash in these trying times.

But where exactly does crypto fit into the equation of failing banks?

Enter Bitcoin & crypto

Yes, with FDIC, most, if not all, customers of the doomed West Virginian bank will have their accounts insured up to $250,000, which can be effectively guaranteed due to the FDIC’s ability to draw on capital from the U.S. Treasury.

In other words, the affected depositors likely aren’t crying out, begging for a way out of the fiat system.

Though, the FDIC isn’t perfect; Reuters recently revealed that around 40 percent of all bank deposits in the U.S. are not insured by the FDIC, meaning that depositors could lose their shirts if certain banks fail and are liquidated. The outlet says that it amounts to $5.8 trillion. Yes, trillion.

Furthermore, individual accounts with above $250,000 in deposits are not fully insured, also meaning that a bank failure could wipe out much of the wealthy’s capital.

Enter Bitcoin and crypto.

Even if there is no guarantee banks will fail amid the crisis, digital assets ensure that as long as the holder has secure and sole possession of the private keys, they’re the only ones with access to the coins. In other words, no centralized bank can fail to pay out your Bitcoin wallet balance, much unlike fiat.

More broadly, many think the current macroeconomic environment, whereas central banks are going big on printing money without the vote of the people, will strengthen the fundamentals of decentralization. As said by Chris Burniske:

“New technologies rise as old systems break, and often it takes a crisis to reveal the flaws of the old system in full.”

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Bitcoin Just Passed $7,000 Yet Again: What Do Analysts Think Is Next?

Minutes ago as of the time of this article’s writing, Bitcoin breached a daily high, rallying past $7,000 to near $7,050.This meant that from Sunday’s lows, BTC is up 5%, echoing gains seen in the stock market, despite a worsening coronavirus outbreak. With the recent strength in mind, what are analysts expecting to come next? What’s Next For Bitcoin? Right now, all analysts have their eyes on notable candle closes, like the six-hour, daily, or weekly. The rally aforementioned is Bitcoin’s fifth attempt at retaking $7,000 on a four-hour candle basis, with all four attempts previously failing, suggesting that $7,000 is a key psychological and technical resistance. It failing to retake this level, which some analysts have since dubbed a “decision point” due to its importance, could indicate impending bearish pressure for the crypto market. As reported by NewsBTC on Sunday, Nik Patel — a markets analyst and the author of the crypto trading bible, “An Altcoin Trader’s Handbook” — suggested that BTC failing to surmount $7,000 on a medium-term time frame will likely lead to a retracement to $5,680, which would be a 20% drop from $7,000. The chart accompanying his sentiment indicates that $7,000 was the weekly high seen last week, making it important from a technical analysis perspective. The call for a retracement has been echoed by another popular crypto trader, who shared the below image on April 4th, predicting the ongoing “sweep” of the local highs around $7,000. What comes next, they explained, will be a 7% retracement back to $6,500, which would kill the bullish momentum that has been forming over the past three weeks once and for all. However, if Bitcoin manages to decisively reclaim $7,000, further upside is likely. A chart from trader Filb Filb indicated that Bitcoin retaking $7,000 would likely support a rally towards $8,000, at which point it is likely to be rejected due to the “resistance cluster” in that region. At Least The Bottom Is In While there seems to be an opportunity for traders to catch some short-term downside, a consensus is building that the long-term bottom for the Bitcoin price was established in March. Utilizing two indicators, on-chain analyst Willy Woo observed that the way in which Bitcoin’s mining ecosystem is developing gives credence to the sentiment that BTC won’t fall any lower than $3,800, March’s lows: Firstly, the Hash Ribbons — moving averages of the hash rate — have started to recover, which is a “reliable bottom signal.” The last time the Hash Ribbons looked similar to as they do now was in December 2019, at the $6,400 bottom, and in December 2018, the $3,150 bottom. And secondly, the Miners Energy Ratio, “the ratio between Bitcoin’s market cap to its energy consumption is in the buy zone” after briefly breaking into the “extreme buy zone” during March’s crash. The last time this ratio entered the extreme buy zone was months before the previous halving, prior to the 4,000% rally to $20,000. Featured Image from Shutterstock

The Crypto Market Just Put In a “Reliable Bottom Signal”: Can We Trust It?

“Has the crypto market bottomed?” is the question that has been on the minds of Bitcoin traders over the past weeks; after March 12th’s capitulation event, traders have been divided over this question. Despite the uncertainty, Willy Woo, a prominent on-chain crypto analyst, recently weighed in on this pressing debate, writing that two fundamental metrics are suggesting the bottom has been established. Related Reading: Crypto Tidbits: Bitcoin At $7,000, FATF Regulation, Coinbase Backs Ethereum DeFi Key Bitcoin Mining Indicator Suggests Crypto Market Bottom Is In Utilizing two indicators, the analyst explained that the way in which Bitcoin’s mining ecosystem is developing is indicating this market bottomed in March. Firstly, the Hash Ribbons — moving averages of the hash rate — have started to recover, which is a “reliable bottom signal.” The last time the Hash Ribbons looked similar to as they do now was in December 2019, at the $6,400 bottom, and in December 2018, the $3,150 bottom. And secondly, the Miners Energy Ratio, “the ratio between Bitcoin’s market cap to its energy consumption is in the buy zone” after briefly breaking into the “extreme buy zone” during March’s crash. The last time this ratio entered the extreme buy zone was months before the previous halving, prior to the 4,000% rally to $20,000. A tale of 2 miner charts. #Bullish Hash Ribbons recovering (assumes no lower low), a reliable bottom signal, probably some miner capitulation during the crash. They last got culled in Dec 2018, only the strong remain, I don't expect miners to add more sell pressure from here. pic.twitter.com/t0GEqKCKjv — Willy Woo (@woonomic) April 5, 2020 Other Factors Are Flipping Bullish Too There are other factors suggesting the worse has passed for the crypto market. According to screenshots of crypto-enabled retail brokerages based in the U.K. shared by trader Nik Patel, a majority of users of these platforms are leaning long on Bitcoin. In fact, for IG.com is signaling that 78% of client accounts are long on the cryptocurrency. Furthermore, Coinbase Pro’s order book shows that there are more traders bidding the foremost crypto than selling it, with there existing nearly 24,000 BTC worth of orders down to an order price of $2,000 and a mere 4,000 BTC worth of orders up to $12,000. The fact that there is such booming demand for Bitcoin suggests it will be hard for sellers to push the cryptocurrency back to the $3,800 lows. Bloomberg suggests that technical indicators support the idea that upside is favored. Per previous reports from NewsBTC, the GTI Vera Convergence Divergence Indicator recently “flashed its first buy signal in over three months” for the Bloomberg Galaxy Crypto Index — comprised of Bitcoin, Ethereum, Litecoin, Bitcoin Cash, XRP, and EOS. Furthermore, the outlet on April 3rd wrote that Bitcoin has pushed above a key level of technical resistance, resulting in a technical gauge registering a “positive divergence and buy signal.” This indicator last did so in January 2020, prior to the 50% rally that brought BTC to $10,500. Featured Image from Shutterstock

After Trashing Bitcoin, McAfee Is Promoting These Three Altcoins

If you were asked to name one of Bitcoin’s most prominent proponents, John McAfee would probably be one of the first individuals to come to mind. As the cryptocurrency market was blowing up in 2017, McAfee, the creator of the cybersecurity company that shares his name, shared the below message, claiming that he then believed Bitcoin would hit $1 million by the end of 2020. On the line: his family jewels, so to say, which McAfee claimed he would eat on national television of the price target was not hit. When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD — John McAfee (@officialmcafee) November 29, 2017 While many thought he was kidding, he continued to double down on this stance over the years. Late last year, he took an interview with Forbes, in which he stated that he believes BTC will surpass $1 million apiece simply due to the scarcity of the asset: “Let’s get real, there are only 21 million bitcoins. Seven million of which have been lost forever, and then, if Satoshi [bitcoin’s anonymous creator] is dead, add a few more million.” But, he’s begun to bash Bitcoin, instead touting altcoins that he thinks can perform the job of a decentralized and private cryptocurrency better. McAfee even went as far as to backtrack on his prediction, branding it a “ruse to onboard new users” in reference to the mass media coverage this oddball price target created. Out With Bitcoin, In With These Altcoins: McAfee In a message published April 4th, McAfee made himself clear yet again, sharing that he thinks “Bitcoin is worthless,” despite his long-standing statements that the scarcity of the cryptocurrency should see it greatly appreciate in value. As to what will replace the flagship cryptocurrency, the enigmatic technology entrepreneur pointed to the DAI stablecoin, Ethereum, and Monero, explaining that the latter is “widely used among tens of thousands of us who no longer use banks, credit cards or paper currency.” This comes after McAfee said Bitcoin is an “ancient technology,” likening the first blockchain to the Model T of automobiles. Featured Image from Shutterstock

Eerie Fractal: Bitcoin Bottomed at $3,800, Price Poised to Rally 25%

Over the past few weeks, Bitcoin traders have been divided over whether or not the crypto market has bottomed. Interestingly, many have said no, simply citing the fact that there’s no telling how long the coronavirus crisis will last and how that uncertainty and economic damage will affect traditional markets, especially equities. Though, a popular crypto trader recently shared a very familiar fractal seemingly confirming that the bottom is in. Related Reading: Crypto Tidbits: Bitcoin At $7,000, FATF Regulation, Coinbase Backs Ethereum DeFi Fractal: Bitcoin Bottom May Be In Trader Coiner-Yadox recently shared the two charts seen below, accentuating that the recent price action is looking eerily similar to the bottoming process seen in late-2018 and early-2019: both of the charts depict a vertical drop into a bottom, an immediate rally from the bottom, then a drawn-out ascending triangle to kickstart a new bull phase. The only thing that the recent price action is missing is it rallying out of the ascending triangle as Bitcoin did in early-2019. Thus, BTC following this fractal to a T will see it rally past $8,000 in the coming days. Importantly, there are some key differences between the fractal’s basis and the current price action. These include but are not limited to: the last bottom took 140 days compared to the three-odd weeks for the current, and Bitcoin’s recent crash was due to a black swan event rather than simple market cycles. Corroborating the cheery sentiment that the crypto market has bottomed, Bloomberg reported late last week that Bitcoin recently pushed above a key level of technical resistance, allowing the DVAN Buying and Selling Pressure Gauge to print a “positive divergence and a buy signal.” The last time this signal was seen was at the start of January, just before BTC began a strong 50% rally to $10,500 by the middle of February. Some Beg to Differ Although possible, there are some that have thrown cold water on this fractal, which would create a “V-shaped” recovery on the charts. Per previous reports from NewsBTC, when looking at Bitcoin’s chart through the perspective of Elliot Wave analysis, trader Smart Contracter thinks it remains bearish: “[T]heres [sic] so many different ways you could count BTC here: either wxy, larger triangle, larger flat, I’m not too sure, the one thing that does stick out is the series of 3 wave moves and lack of 5 wave motives. [F]or this reason, I think its still too early to call a bottom.” His sentiment was corroborated by other Elliot Wave-focused analysts, who explained that Bitcoin’s recent rally on declining volume looks “corrective,” suggesting a reversion lower is growing more and more likely as time elapses. Smart Contracter is known for calling Bitcoin’s $3,200 bottom in 2018 some six months in advance. Featured Image from Shutterstock

This Transpiring Could Send Bitcoin Tumbling 20% Lower: Analyst

Over the past week, Bitcoin has done surprisingly well, rallying from the $6,100 price seen last Sunday to a weekly high of $7,200, outperforming a majority of assets. Unfortunately, analysts are warning of a breakdown to pre-recovery levels. Related Reading: The U.S. Dollar is Dying, Buy Bitcoin: “Rich Dad Poor Dad” Author Could Bitcoin Drop 20%? There’s no doubt Bitcoin has done well over the past few weeks, rallying from the lows at $3,700 to the recent high of $7,200 as aforementioned. According to Nik Patel — an analyst and the author of the crypto trading bible, “An Altcoin Trader’s Handbook” — however, a weekly close under $7,000 will likely lead to a retracement to $5,680, which would be a 20% drop from $7,000. Patel’s chart indicates that $7,000 was the weekly high seen last week, making it important from a technical analysis perspective. Close this Weekly below 7000 and I'd expect to see 5680.$BTC pic.twitter.com/17fGXQm35p — Nik Patel (@cointradernik) April 4, 2020 A close under $7,000 seems likely; just hours before the weekly candle is set to close, Bitcoin saw a rejection at $6,900, falling back to $6,700. Related Reading: Crypto Tidbits: Bitcoin At $7,000, FATF Regulation, Coinbase Backs Ethereum DeFi Long-Term Outlook Forming Bullish Although there are these signs of downside in the short term, many are growing convinced that the long-term outlook for Bitcoin is anything but bearish. Case in point, Anthony Pompliano of Morgan Creek Digital recently identified two fundamental trends that will act as “rocket fuel” for the rocket that is BTC’s price: Central banks and printing money like there is no tomorrow: In a bid to prevent societal turmoil and an economic depression resulting from the coronavirus outbreak, central banks and governments have begun to enact emergency measures, handing out free money to consumers, cutting interest rates to promote spending, and injecting trillions of dollars worth of liquidity into the bond markets to keep the economy running. Bitcoin’s halving is nearing: In just over a month from today, the number of BTC mined each day will get cut in half due to the so-called “halving.” This will make the cryptocurrency more scarce than gold and fiat, assuming a 2 percent annual inflation rate and a 2 percent annual growth of the physical stock of gold. Featured Image from Shutterstock

Global demand for crypto continues to skyrocket: What’s behind this trend?

Considering Bitcoin fell by nearly 50 percent during a single day in March, it may be easy to assume that interest in the cryptocurrency market is low; this would make sense, for a multi-billion-dollar asset to lose half of its value within a day would normally send consumers running for the hills.

But interestingly, data shows that demand for Bitcoin and other cryptocurrencies is truly on the rise.

Demand for Bitcoin & crypto assets is exploding

Data shared by Yassine Elmandjra — a crypto-asset analyst at tech investment fund and research firm ARK Invest — shows that the “relative Google search interest” for the term “Bitcoin” is approaching all-time highs (first established at the peak of the 2017-2018 bubble) in “several emerging markets”: Peru, Guatemala, Zambia, Uruguay, Kenya, Nigeria, and Burkina Faso.

What’s interesting is that the strong surge in interest in the leading cryptocurrency has transpired over the past week or two, Elmandjra’s chart indicates, counteracting the sentiment that March’s crash deterred investors.

It appears the growing demand for Bitcoin and crypto is translating to the rest of the world, too.

As reported by CryptoSlate previously, Qiao Wang found that Coinbase Pro’s BTC order book shows that there are six times more buy orders than sell orders (-/+ $6,000 on each side). Furthermore, this outlet has detailed a trend of stablecoin issuers minting literally hundreds of millions of dollars worth of cryptocurrency over recent weeks.

Bitcoin just hit $7,000: 3 factors that could be behind this explosive move
Related: Bitcoin just hit $7,000: 3 factors that could be behind this explosive move

But what’s causing this trend, which is antithetical to the reflexivity of the crypto market, which states that lower prices should beget less interest in this asset class.

What’s causing this trend?

No one, unfortunately, has a concrete answer.

But, there have been a number of trends that are seemingly making the fundamental case for investing in Bitcoin and crypto-assets as a whole.

Funnily enough, the two trends are the same that my grandfather — no joke — quoted to me when he rung me up last weekend asking how he could purchase some Bitcoin as an investment:

  • Central banks and printing money like there is no tomorrow: In a bid to prevent societal turmoil and an economic depression resulting from the coronavirus outbreak, central banks and governments have begun to enact emergency measures, handing out free money to consumers, cutting interest rates to promote spending, and injecting trillions of dollars worth of liquidity into the bond markets to keep the economy running.
  • Bitcoin’s halving is nearing: In just over a month from today, the number of BTC mined each day will get cut in half due to the so-called “halving.” This will make the cryptocurrency more scarce than gold and fiat, assuming a 2 percent annual inflation rate and a 2 percent annual growth of the physical stock of gold.

Anthony Pompliano, a co-founder of Morgan Creek Digital, dubbed these two trends “rocket fuel” for Bitcoin, referencing how these factors will work in tandem to increase the demand for the crypto in a time when the scarcity of it increases, creating a supply-demand dynamic that greatly favors price appreciation.

So with the fundamentals narratives surrounding crypto-investment only growing in potency and popularity, it makes sense why the demand for this asset class is growing.

The post Global demand for crypto continues to skyrocket: What’s behind this trend? appeared first on CryptoSlate.

The U.S. Dollar is Dying, Buy Bitcoin: “Rich Dad Poor Dad” Author

The past few weeks have undoubtedly been rough for crypto; from the February highs, Bitcoin has fallen 36%, reaching a low of $3,800 in March. Robert Kiyosaki, the author of the popular financial book “Rich Dad Poor Dad,” sees no reason to fear, though. In fact, the well-known investor recently went as far as to say that it’s time to drop dollars for Bitcoin and other hard money. Related Reading: Last Time This Signal Flashed, Crypto Rallied By 50%. It’s Back Again Sell Dollars, Buy Bitcoin: Robert Kiyosaki In a recent tweet, Kiyosaki explained that with the Fed “counterfeiting […] trillions of fake dollars – $82 billion a month to $125 billion a day” and interest rates at 0%, it makes sense to save “gold, god’s money, or Bitcoin, people’s money,” rather than the fiat dollars that don’t yield anything and are being constantly debased. He added in a later tweet that the dollar is likely “dying,” boosting the case to invest in gold, silver, and Bitcoin. DEATH OF DOLLAR. People desperate for money. Very sad. If government gives you free money take it yet spend it wisely. DO NOT SAVE. Buy gold, silver, Bitcoin. Dollar is dying. Silver $20. Best Buy for future security. Everyone can afford $20, especially with free fake money. — therealkiyosaki (@theRealKiyosaki) April 4, 2020 Demand Is Booming It should come as no surprise, then, that demand for Bitcoin is booming. Leading cryptocurrency exchange Coinbase reported that during the now-infamous “Black Thursday” crash, the exchange saw a dramatic surge in buying interest for cryptocurrency: “But beyond just a rush, two things are clear: customers of our retail brokerage were buyers during the drop, and Bitcoin was the clear favorite. Our customers typically buy 60% more than they sell but during the crash this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto assets even during extreme volatility.” The U.S.-based Kraken corroborated this narrative, writing in a recent tweet that the exchange “recorded an 83% rise in sign ups, and a 300% increase in verifications” over the past few weeks. Also, per previous reports from NewsBTC, according to data from blockchain analytics company Coin Metrics, the value of all U.S. dollar stablecoins (USDT, Binance USD, USD Coin, etc.) is on the verge of passing $8 billion — a metric up by 20% in the past month in itself. CM has added Huobi dollars (HUSD) and Binance dollars (BUSD) to their community data. Stablecoin supply in the sample is just shy of $8b collectively. My guess is it passes that threshold tomorrow. https://t.co/aEOeZIpiDk pic.twitter.com/B9WPd1mbsM — nic carter (@nic__carter) March 29, 2020 As to why this is bullish, Su Zhu, CEO of Three Arrows Capital, summed it up nicely in 2019 when he wrote that with so much money sitting on the sidelines, especially in stablecoins, BTC could appreciate rapidly: “Theres an estimated $2B in cash sitting at crypto funds/holdcos. Theres another $2B+ sitting in stablecoins, and another $2B sitting at exchanges/silvergate/signature. This is $6B fiat already onboarded to crypto to buy your bags. Imagine thinking we need new money to hit $10k.” Featured Image from Shutterstock

Traders Are Loading Up On Bitcoin Longs: What Does This Mean?

Bitcoin may have crashed 50% in a single day in March, but this hasn’t stopped traders from investing in the cryptocurrency. In fact, a number of data sources suggest that a majority of investors are starting to load up on their BTC positions, despite the uncertainty in the global economy. Bitcoin Investors Are Buying At a Rapid Clip According to screenshots of crypto-enabled retail brokerages based in the U.K. shared by trader Nik Patel, users of these platforms are long on Bitcoin. In fact, for IG.com is signaling that 78% of client accounts are long on the cryptocurrency. Three of the most prominent retail brokers in the UK pic.twitter.com/kIvSpcvemG — Nik Patel (@cointradernik) April 4, 2020 This isn’t the only evidence suggesting that the majority of crypto market participants are leaning long. Qiao Wang of Messari, a former institutional trader, recently shared the below chart, which shows the Bitcoin order book for Coinbase Pro. BTC order book… While I'm short-term cautious due to macro conditions, it can't get any more long-term bullish than this: pic.twitter.com/snq8ISFMCF — Qiao Wang (@QWQiao) April 2, 2020 Although not representative of other exchanges, it is clear that there are more traders bidding the foremost crypto than selling it, with there existing nearly 24,000 BTC worth of orders down to an order price of $2,000 and a mere 4,000 BTC worth of orders up to $12,000. Wang wrote that “it can’t get any more long-term bullish than this,” referencing the data. Sign Of An Imminent Reversal? While the strong buy interest in Bitcoin suggests further upside is imminent, it may be a sign of bad things to come for the cryptocurrency market. A big narrative pushed by prominent traders in both traditional markets and the crypto industry is that going against the majority, going against the grain is often the correct trade to make. Think back to the age-old Warren Buffett quote that goes: “[be] fearful when others are greedy and greedy when others are fearful.” This quote seemingly applies to the crypto market: In December 2018, after Bitcoin had plunged 50% within a month, there were countless analysts calling for the cryptocurrency to return to $1,000, with some even predicting a return to $800. Related Reading: Last Time This Signal Flashed, Crypto Rallied By 50%. It’s Back Again But, as soon as these predictions went mainstream, gaining popularity on social media forums, Bitcoin reversed, heading higher towards $4,000 instead of establishing new lows. The same trend was seen when Bitcoin breached $14,000 in the middle of 2019, with the asset returning to a bear market rather than exploding to a fresh all-time high. Featured Image from Shutterstock

Crypto Tidbits: Bitcoin At $7,000, FATF Regulation, Coinbase Backs Ethereum DeFi

Another week, another round of Crypto Tidbits. Over the past week, Bitcoin has performed rather well, rallying from $6,100 to $6,800 as of the time of this article’s writing, a few percent shy of the multi-week high of $7,200. Altcoins followed the market leader, posting similar gains. Bitcoin remains below the key resistance around $7,000, which some analysts have dubbed a “decision point” for the medium-term trend of the asset. With this in mind, BTC could easily reverse lower, though many investors have announced that the asset’s fundamentals are becoming stronger than ever. Placeholder Capital’s Chris Burniske, for instance, wrote that this crisis “will pass, and crypto’s fundamentals will have strengthened through it.” 10/ Most importantly, I hope everyone is staying as well as possible. While the future weeks are full of uncertainty, I know that eventually, this virus will pass, and #crypto's fundamentals will have strengthened through it. — Chris Burniske (@cburniske) March 21, 2020 This strength in the crypto market comes as the stock market has begun to show signs of weakness, reacting to a rapidly-worsening coronavirus outbreak and record-level unemployment claims in the U.S., which hit 6.6 million this past week. Whatever the case, the crypto space saw an interesting wee. Related Reading: Crypto Tidbits: Bitcoin Holds $6,000s, Federal Reserve To Do “QE Infinity,” U.S. Digital Dollar Proposed Bitcoin & Crypto Tidbits Analysts Expect Bitcoin to Pass $20,000 High… Soon: Over the past few weeks, a number of crypto analysts have touted the sentiment that within the coming year, the price of Bitcoin will surpass $20,000 — nearly 200% higher than the current price of $6,700. People touting this sentiment include Galaxy Digital’s Mike Novogratz, Raoul Pal of Real Vision, and Dan Morehead of Pantera Capital — all former institutional traders turned crypto bulls. These investors primarily cite the fact that governments and central banks have been forced to respond to the outbreak with their most drastic measures available, printing money en-masse, which should benefit the scarce Bitcoin and decentralized crypto assets. FATF Urges U.S. to Increase Crypto Regulation: At the end of March, the Financial Action Task Force (FATF) explained in its latest report on the state of compliance in the U.S. that it is lacking proper crypto regulation. The global financial regulator said that there are “minor deficiencies” in how the U.S. regulates crypto, citing the stat that “30% of all registered CVC [convertible virtual currencies] providers have been inspected since 2014.” Although the U.S. is lacking, it has pledged to make crypto crime a focus; Steven Mnuchin, the Secretary of the U.S. Treasury, said that the Treasury will soon roll out “significant new requirements” for crypto assets and their respective service providers. Coinbase Injects More Liquidity Into Ethereum DeFi Ecosystem: To support the decentralized finance ecosystem, Coinbase recently announced a $1.1 million investment via its USDC Bootstrap Fund for two projects: $1 million to Uniswap, a decentralized exchange, and $100,000 to PoolTogether, a decentralized “no-loss” lottery. Earlier, Coinbase provided $1 million in USDC to both Compound and dYdX to kickstart the Bootstrap Fund. Tron Launches MakerDAO-like App: On March 28th, Sun released the somewhat cryptic tweet seen below, writing “Something new.” and attaching the tweet with an image outlining a “CDP Portal.” Later. it was revealed that what Sun was posting about is a new Tron-based application called “Djed,” a project that touts itself as one that is “building the financial infrastructure for billions of people around the world.” Djed, which has since been renamed to “Just,”  is a decentralized stablecoin solution that will allow users to put up Bittorrent and Tron tokens as collateral for a new stablecoin. Something new. #DJED #TRON #TRX $TRX pic.twitter.com/k0rbDtjT0Y — Justin Sun (@justinsuntron) March 28, 2020 Crypto Stablecoin Demand Explodes: Despite the strong downturn seen in the crypto markets, epitomized by Bitcoin’s 50% decline that transpired on Mar. 12, the amount of Tether’s USDT stablecoin in existence has exploded. In fact, according to industry news aggregator Unfolded, the market capitalization of the asset recently surpassed $6 billion, with $1 billion added to this metric in the past two weeks alone. In an industry valued at under $200 billion, such inflows are clearly dramatic. Featured Image from Shutterstock

What’s Next For Bitcoin After Brutal Rejection At Key $7,000 Price Point?

Just two hours ago, Bitcoin started to rally after trading at $6,700 for most of Saturday morning and afternoon, rallying as high as $7,020 in a vertical move that brought the asset 4%. But, as fast as the cryptocurrency rallied, it was rejected, returning to where it began just minutes later — a loss for bulls hoping BTC could establish a higher high on the daily chart. Joe McCann  — a noted crypto trader and an AI/Cloud specialist at Microsoft — remarked that the recent explosive move is most likely related to a futures short squeeze caused by negative funding rates on BitMEX: “Funding rate continues to maintain its negativity yet price won’t go down. If bulls keep this up there will be an epic squeeze coming… There’s the squeeze.” With the surge’s gains having since been reverted, what are analysts thinking comes next for Bitcoin and the rest of the crypto market? Analysts Are Growing Bullish On Bitcoin Surprisingly, despite the strong rejection at the key $7,000 technical resistance, analysts are bullish about the short-term to medium-term prospects of the leading cryptocurrency. According to a Bloomberg report published April 3rd, Bitcoin recently pushed above a key technical resistance, allowing the DVAN Buying and Selling Pressure Gauge to print a “positive divergence and a buy signal.” The last time this indicator printed a buy signal was at the start of the year, which preceded Bitcoin’s rally from $7,000 to $10,500 within 50 days’ time.  Furthermore, prominent crypto trader TraderSmokey recently noted that Bitcoin has passed above the 12-hour Kumo cloud, the central aspect of the Ichimoku Cloud indicator, which suggests an uptrend could be forming. Not Everyone Is Convinced Unfortunately, not everyone is convinced: a well-known trader remarked that looking through the perspective of Elliot Wave analysis, it still seems somewhat bearish. He shared on April 3rd: “[T]heres [sic] so many different ways you could count BTC here: either wxy, larger triangle, larger flat, I’m not too sure, the one thing that does stick out is the series of 3 wave moves and lack of 5 wave motives. [F]or this reason, I think its still too early to call a bottom.” His sentiment was corroborated by other Elliot Wave-focused analysts, who explained that Bitcoin’s recent rally on declining volume looks “corrective,” suggesting a reversion lower is growing more and more likely as time elapses. Featured Image from Shutterstock

Big crypto firms are purportedly laying off staff, but others are on hiring sprees

Many tout Bitcoin and cryptocurrency for their uncorrelated natures, their ability to simply not care what the rest of the world is doing.

But, this is seemingly not true; reports indicate that a number of crypto companies have begun to lay off staff or have paused their hiring processes most likely in response to the outbreak of the coronavirus around the world.

Crypto companies have begun layoffs, a report suggests

According to a “100% user-generated” list of companies on hiring site Candor, which is being “maintained” by the co-founder of the site, Bitcoin.com, crypto mining firm Bitfarms, and mining hardware manufacturer Bitfury are among the firms in this industry that have begun to lay off staff over the past few weeks.

The note attached to the Bitcoin.com listing suggests that “around” 50% of the staff were laid off. Notably, the company still has two positions open, though these listings were published over three weeks ago. But in an Apr 3. comment to CoinSpice, chairman Roger Ver said his company is looking for a “leaner more guerrilla team” in “these times,” seemingly confirming the Candor report.

The note attached to Bitfury’s listing indicates a lay-off of “managers and [the] offshore team.” There was no note attached to Bitfarms’ listing.

The list also indicates that Block.one, the company behind EOS, and Blockworks Group, a crypto media and events firm, have implemented a hiring freeze.

Outside of the Candor list, Hebrew media site The Marker revealed that 18 of BLOCKTV’s 23 staffers were laid off while the crypto news company also terminated its contracts with freelance workers. BLOCKTV cited the coronavirus epidemic, which has brought the Israeli economy to a standstill.

This comes shortly after BLOCKTV raised capital through BLTV, which is a token that has since been listed on Bittrex amongst other exchanges.

Also, one of the original crypto companies, Factom, has purportedly gone into liquidation, despite securing millions of dollars worth of funding over the past five years and garnering a grant from the U.S. Energy Department.

What’s the cause?

This is presumably similar to the crypto layoffs seen at the end of 2018, when the price of Bitcoin fell to the low-$3,000s in an explosive fashion. This crunch led Ledger, Sirin Labs, among other companies to cut some of their staff, reports from media then indicated.

Indeed, since the February highs, Bitcoin has collapsed by 40 percent, while the global economy has slowed due to the coronavirus outbreak, presumably decreasing demand for certain offerings in the cryptocurrency and blockchain space.

Like gold with previous crises, Bitcoin will thrive after coronavirus, research shows
Related: Like gold with previous crises, Bitcoin will thrive after coronavirus, research shows

Though, as the Candor list isn’t detailed, a number of the companies mentioned above may be participating in layoffs or hiring freezes for reasons other than the value of Bitcoin falling or the coronavirus freezing the economy.

It’s not all bad news

Although there are crypto companies purportedly laying off their employees at scale, there remain some that continue to scale up their operations as if Bitcoin was setting new highs each and every day: exchanges.

Binance’s chief executive, Changpeng Zhao, made this clear on Mar. 30, when he wrote that in the history of his company, they have “never done any layoffs, even through the many ‘[crashes] of Bitcoin’.”

He added that they are “hiring.” This seems to be the case; according to Binance’s careers page, there are 171 open positions, from titles like “Affiliate Marketing Manager” to “Senior Business Manager – Futures International Growth.”

Kraken, too, seems to be joining in on the hiring spree. According to a report from Forbes published Mar. 26, the San Francisco-headquartered Bitcoin exchange company is hiring an extra 67 people to its 800-person team, with many of the open positions having a focus on “hospitality professionals and liberal arts majors.”

CryptoSlate was also able to find a number of job listings for a swath of crypto companies on LinkedIn, AngelList, and other avenues, confirming that some are taking advantage of acquiring recently laid-off talent.

Many of the hiring crypto firms are exchanges, as these businesses are able to secure revenue as long as there is buying or selling demand for digital assets, meaning a depressed Bitcoin price may not hamper its cashflow that greatly.

The post Big crypto firms are purportedly laying off staff, but others are on hiring sprees appeared first on CryptoSlate.

Last Time This Signal Flashed, Crypto Rallied By 50%. It’s Back Again

Bitcoin and the rest of the crypto market have performed surprisingly well over the past few days. This week, the leading cryptocurrency hit $7,200, which marks a nearly 100% bottom from the ~$3,800 bottom that was put in place on March 13th. Even though the rally has cooled off, BTC trades at $6,800, which is just a smidgen below the levels seen pre-crash. Although impressive, especially considering that this recovery took a mere three weeks, a key indicator suggests that there’s more upside for this nascent market. Crypto Could Continue to Creep Higher, Key Indicator Suggests According to a Bloomberg report published April 3rd, Bitcoin recently pushed above a key technical resistance, allowing the DVAN Buying and Selling Pressure Gauge to print a “positive divergence and a buy signal.” To add to this, Bloomberg noted earlier this week that the “GTI Vera Convergence Divergence Indicator, which measures up and down shifts,” suggests the Bloomberg Galaxy Crypto Index — comprised of Bitcoin, Ethereum, Litecoin, Bitcoin Cash, XRP, and EOS — “flashed its first buy signal in over three months.” Both indicators flashing buy signals preceded the 50% rally seen in the price of Bitcoin and most other cryptocurrencies that transpired from mid-December to February. Other Factors Are Booming It isn’t only crypto’s technicals that are strong, it’s the fundamentals too. Qiao Wang of Messari, a former institutional trader, recently shared the below chart, which shows the Bitcoin order book for Coinbase Pro. Although not representative of other exchanges, it is clear that there are more traders bidding the foremost crypto than selling it, with there existing nearly 24,000 BTC worth of orders down to an order price of $2,000 and a mere 4,000 BTC worth of orders up to $12,000. Wang wrote that “it can’t get any more long-term bullish than this,” referencing the data. BTC order book… While I'm short-term cautious due to macro conditions, it can't get any more long-term bullish than this: pic.twitter.com/snq8ISFMCF — Qiao Wang (@QWQiao) April 2, 2020 Furthermore, the next Bitcoin block reward halving is now only 40 days away, according to estimates shared by a number of sources on the web. Traders believe that this event will have a decisively positive impact on the markets, citing an econometric model from analyst PlanB. The model suggests that the fair value of Bitcoin will shoot over 1,000% higher after the event, as PlanB found that BTC’s value is derivative of its own level of scarcity. Featured Image from Shutterstock

These 2 Top Analysts Expect Ripple’s XRP To Embark On Strong Rally

Over the past few weeks, Bitcoin, not Ethereum or XRP, has been the focus of many crypto traders. But, two top analysts believe that the third-largest cryptocurrency, XRP, could soon gain strength against the market leader, citing simple technical factors that suggest upside is imminent. XRP To Outpace Bitcoin? On March 31st, Luke Martin, a prominent crypto trader featured on CNN, recently posted the below chart, showing that he expects for XRP to appreciate strongly against Bitcoin in the coming weeks. While his comment attached to the chart was nebulous, his chart showed XRP rebounding strongly off the lower level of a long-term range against BTC, boding well for the bullish narrative. I don't know how, and I don't know why, but this is what I expect for $XRPBTC pic.twitter.com/6hkUj0aGq8 — Luke Martin (@VentureCoinist) March 31, 2020 Michael Van De Poppe, a trader at the Amsterdam Stock Exchange and contributor to CoinTelegraph, echoed this sentiment in a recent analysis, posting the below chart that shows XRP/BTC has held a key level of support as Martin indicated. Per previous reports from NewsBTC, Van De Poppe suggested that the defense of the 2,600 satoshis level could lead to a 20% rally over the coming month, which will likely pause at the overhead resistance around 3,100 satoshis. Related Reading: Crypto Tidbits: Bitcoin Holds $6,000s, Federal Reserve To Do “QE Infinity,” U.S. Digital Dollar Proposed Don’t Bet On It While the trader is eyeing such a rally, some aren’t too sure that altcoins will outperform the market leader moving forward. Per previous reports from NewsBTC, in “Crypto In This Crisis: Pantera Blockchain Letter, March 2020,” Dan Morehead and Joey Krug of blockchain-centric fund Pantera Capital explained that Bitcoin will “probably out-perform other tokens for a while,” explaining that it is one of the crypto projects that are entrenched and doesn’t rely on funding per se: It’s a project that’s already built, it works, it has an 11-year track record. Many newer blockchain and smart contract projects are still in development and might be stressed to raise funding to complete their development. They further explained that “there’s typically a flight-to-quality” or flight to safety “where people want to put money in the mega-caps, the safest asset, “the Treasuries” of the industry.” In the case of crypto assets, Bitcoin is a Treasury bond, as it is much more liquid than the rest. Related Reading: Top Investors Think Bitcoin Can Breach $20,000 In Coming 12 Months: Here’s Why Featured Image from Shutterstock

Analyst Who Called Bitcoin’s $3,000 2018 Bottom Thinks This Is Next

Over the past three weeks, since Bitcoin hit $3,800 in a capitulation event, the cryptocurrency market has mounted an extremely strong recovery. In fact, just the other day, the cryptocurrency shot some 10% higher within a few hours’ time, rallying from $6,600 to $7,200 in a strong upward swing that liquidated dozens of millions worth of short positions. Related Reading: Crypto Tidbits: Bitcoin Holds $6,000s, Federal Reserve To Do “QE Infinity,” U.S. Digital Dollar Proposed The price action has convinced many that a bottom is decisively in for the digital asset market, especially considering that the macro trends continue to favor Bitcoin. But, according to an eerily accurate trader, this is unlikely the case. Is the Bitcoin Bottom In? The past few weeks have undoubtedly been positive for Bitcoin; the cryptocurrency has established a series of higher lows and higher highs, showing the hallmarks signs of a forming uptrend. But, according to crypto trader Smart Contracter, when looking at Bitcoin’s chart through the perspective of Elliot Wave analysis, it still seems somewhat bearish. He shared on April 3rd: “[T]heres [sic] so many different ways you could count BTC here: either wxy, larger triangle, larger flat, I’m not too sure, the one thing that does stick out is the series of 3 wave moves and lack of 5 wave motives. [F]or this reason, I think its still too early to call a bottom.” theres so many different ways you could count btc here. either wxy, larger triangle, larger flat, im not too sure, the one thing that does stick out is the series of 3 wave moves and lack of 5 wave motives. for this reason i think its still too early to call a bottom pic.twitter.com/WNBxJEcOdF — 🍄🌲Benjamin Blunts🌲🍄 (@SmartContracter) April 3, 2020 His sentiment was corroborated by other Elliot Wave-focused analysts, who explained that Bitcoin’s recent rally on declining volume looks “corrective,” suggesting a reversion lower is growing more and more likely as time elapses. Previously, Smart Contracter suggested in mid-March that Bitcoin would fall back to the 2018 lows of $3,200 by the end of the month. Good Track Record While many crypto investors are skeptical of the validity of Elliot Wave analysis, Smart Contracter has a strong track record in analyzing the ever-volatile cryptocurrency markets, giving credence to his commentary. In the middle of 2018, when Bitcoin was in the midst of a bear market, the trader remarked that he expected the asset to find an ultimate bottom at $3,200: “I’m calling a bottom at exactly 3.2k with a 200 dollar leeway either side.” Related Reading: King of the Hill: Top Crypto Investor Explains Why Altcoins Are Highly Risky By the middle of December, his forecast was proven to be right when Bitcoin plunged from $6,000 to a low of $3,150 over the span of a few weeks, then established a macro bottom at that level. Furthermore, he predicted shorter-term price moves over the past few months, like forecasting some of Bitcoin’s strength early this year and the crypto market’s precipitous drawdown in mid-February. Featured Image from Shutterstock

Top Investors Think Bitcoin Can Breach $20,000 In Coming 12 Months: Here’s Why

Despite the crypto crash that transpired last month, emotions are running hot; leading investors think Bitcoin will near its $20,000 all-time high, established at the end of 2017, in the near future. Here’s why they’re so optimistic. Related Reading: King of the Hill: Top Crypto Investor Explains Why Altcoins Are Highly Risky Bitcoin Investors Think Price Will Reach $20,000… Shortly Over the past few weeks, a number of crypto analysts have touted the sentiment that within the coming year, the price of Bitcoin will surpass $20,000 — nearly 200% higher than the current price of $6,700. People touting this sentiment include Galaxy Digital’s Mike Novogratz, Raoul Pal of Real Vision, and Dan Morehead of Pantera Capital — all former institutional traders turned crypto bulls. Related Reading: Crypto Tidbits: Bitcoin Holds $6,000s, Federal Reserve To Do “QE Infinity,” U.S. Digital Dollar Proposed The Math Agrees With the Sentiment What’s interesting is that the math mostly agrees with this lofty sentiment. In March of 2019, pseudonymous analyst PlanB released the below chart to the world, revealing that the value of the Bitcoin network (all coins in aggregate) can be determined by the scarcity of BTC. Scarcity, in PlanB’s eyes, was best determined by the stock-to-flow ratio, or the amount of an asset’s above-ground supply over the amount of the asset minted in a year. PlanB’s econometric model found that after the block reward halving in May of this year, the fair value of the Bitcoin network will rise to $1 trillion to $2 trillion, which coincides with approximately $50,000 to $100,000 per coin. The model has been found to have an R squared of around 93% to 95%, depending on what installment of PlanB’s model you look at. The model is also “cointegrated,” suggesting that the model is not spurious. Notably, the model doesn’t say that the price of Bitcoin should be at the fair value at the time of the halving, but rather predicts a rise to that level with time. It’s Not That Simple Although the expectation is Bitcoin will hit $20,000 within the coming year, some say that a crashing stock market could change that. Chris Burniske of Placeholder Capital explained that he’s open to the idea Bitcoin will see some further downside, despite already falling to the $3,000s on the Mar. 12 capitulation event: From a market perspective, here’s the opportunity as I see it: If global markets freak out again, then there are any number of lows in the $5000s, $4000s and $3000s that BTC could reach. Other cryptoassets would test their own lows. He added that there’s a good likelihood BTC revisits $3,000, citing the fact that the crypto lost the key capitulation level of the 200-week simple moving average and global assets remain in turmoil. Featured Image from Shutterstock

“Rocket fuel”: Why this prominent investor is still eyeing a $100,000 Bitcoin price

With global markets crashing and the broader economy on the verge of another great recession, it’s hard to visualize Bitcoin rallying, especially since it collapsed by 50 percent in a single 24-hour period in mid-March.

But top investors still see upside for the cryptocurrency, with one analyst eyeing a $100,000 Bitcoin price, which is 1,380 percent higher than the current market price of $6,750. Here’s why he expects BTC to appreciate this much.

Bitcoin to rally to $100,000?

Speaking with a commodities news site and bullion dealer, Kitco, Anthony Pompliano — co-founder of crypto fund Morgan Creek Digital Assets and an industry analyst — explained that despite the recent drawdown, Bitcoin is still on track to “rally hundreds of percent” to $100,000 in the coming years.

The exact prediction is $100,000 by December 2021, just over eighteen months from now. Backing this lofty forecast, he cited three things:

  • Central banks are printing money en-masse: To stave off the negative effects of the coronavirus outbreak, central banks have begun to debase money en-masse through quantitive easing and low-interest rates. Analysts believe as the value of fiat decreases, Bitcoin should rise.
  • The upcoming block reward halving: In May, the number of Bitcoin mined each day will get cut in half due to the so-called “halving.” This will reduce the amount of natural selling pressure placed on the BTC price by miners.
  • Demand for Bitcoin is growing: As shown by the strong increase in demand for stablecoins, there is a growing demand for cryptocurrency, presumably due to the aforementioned two narratives and the search for new investments amid these stressing times.
What’s really going on with Tether’s exploding supply? Crypto exec tells all
Related: What’s really going on with Tether’s exploding supply? Crypto exec tells all

These three factors, Pompliano explained, will work in tandem to increase the demand of Bitcoin in a time when the scarcity of the cryptocurrency increases, resulting in both a positive demand shock and a negative supply shock — two trends that should dramatically increase the price of the asset.

The math agrees with Pompliano

Indeed, per previous reports from CryptoSlate, pseudonymous analyst PlanB found that Bitcoin’s market capitalization over time can be plotted on a logarithmic regression, which has an R squared of 93 percent (was originally 95 percent but has since been adjusted down due to volatility), or extremely accurate in non-statistics lingo terms.

The model predicts that BTC will have a fair value of $55,000 to $100,000 — approximately ten to twenty times the current value — after the halving due to the emission shock.

Importantly, the model doesn’t predict when Bitcoin will see this rally, but it predicts a long-term growth towards the fair value.

The post “Rocket fuel”: Why this prominent investor is still eyeing a $100,000 Bitcoin price appeared first on CryptoSlate.

“This Is the Year for Bitcoin”: Novogratz Expects Bitcoin to Hit $20,000 in 2020

Bitcoin

Despite the recent recovery in the crypto markets, Bitcoin remains far below its all-time high of $20,000.

But according to a top investor, the cryptocurrency will revisit this price in the very near future.

Bitcoin to Soon Surmount $20,000?

In April 2nd’s episode of CNBC “Closing Bell,” Mike Novogratz — an ex-partner at Goldman Sachs and CEO of crypto merchant bank Galaxy Digital — doubled down on a prediction he made that Bitcoin will retest $20,000 by the end of 2020.

He added that within the coming six months, BTC should double, which would mean a price of at least $12,000 by October.

He put so much faith in the prediction that he said:

“This is the year of Bitcoin and if it doesn’t go up now by the end of the year, I might just hang my spurs.”

It isn’t only Novogratz that is expecting Bitcoin to hit $20,000 within the coming year.

Per previous reports from Blockonomi, Dan Morehead, a former Wall Street trader turned head of crypto fund Pantera Capital, said that he thinks Bitcoin will set a new record within the 12 months:

My best guess is that it will take institutional investors 2–3 months to triage their current portfolio issues. Another 3–6 months to research new opportunities like distressed debt, special situations, crypto, etc. Then, as they begin making allocations, those markets will really begin to rise.

Also, Raoul Pal — a former Goldman Sachs executive and hedge fund manager — suggested in a recent interview that he thinks Bitcoin will clear its $20,000 high within the coming 12 to 18 months.

What’s The Idea Behind These Predictions?

Although all individual investors and analysts with their own opinions about markets, these three investors seem to agree on what will cause Bitcoin to appreciate so far and so fast: central banks.

In the aforementioned interview, Novogratz explained that he thinks society has passed the “Rubicon,” so to say, of money printing and the monetization of debt to try and spur economic growth.

Indeed, to try and stave off a collapse in society, this, governments and central banks have been forced to respond with their most drastic measures available — boosted unemployment benefits, tax holidays, free money for all citizens, trillions of dollars worth of quantitative easing, and negative interest rates.

Bitcoin Price Predictions
Bitcoin Price Predictions for 2020: From Zero to a Million – What do the Experts Think?

All three of the aforementioned investors believe this trend, which is both debasing fiat money and showing the flaws of the traditional system, could benefit Bitcoin, a scarce and decentralized alternative to fiat money. As Morehead wrote in a recent newsletter:

As governments increase the quantity of paper money, it takes more pieces of paper money to buy things that have fixed quantities, like stocks and real estate, above where they would settle absent an increase in the amount of money. I think they will do that. The corollary is they’ll also inflate the price of other things, like gold, bitcoin, and other cryptocurrencies.

Novogratz, notably, also believes the dynamic of the block reward halving could boost the value of Bitcoin, as he mentioned this event in an interview with CNBC published earlier this year.

Indeed, as found by PlanB, Bitcoin’s market capitalization over time can be plotted on a logarithmic regression, which has an R squared of 95%, or extremely accurate in non-statistics lingo terms.

The model predicts that BTC will have a fair value of $55,000 to $100,000 — ten to twenty times the current value — after the halving due to the emission shock.

The post “This Is the Year for Bitcoin”: Novogratz Expects Bitcoin to Hit $20,000 in 2020 appeared first on Blockonomi.

Top Analyst Believes Bitcoin Could Benefit From a Period of Deflation

Bitcoin

If you’ve perused Crypto Twitter over the past few months, you know the obsession of Bitcoin investors and inflation, specifically hyperinflation; if you ask an investor in the cryptocurrency why they buy BTC, they’re likely to mention something regarding the hyperinflationary collapse of Zimbabwe’s currency.

It’s natural: unlike fiat currencies which can be printed at the whim of central banks and governments, Bitcoin is strictly scarce, with the protocol ensuring that only 21 million coins will ever be mined and sent through the blockchain. Inflation, of course, should help an asset that is scarce and in demand.

But, over the past few weeks, with the collapse in the price of oil and a dramatic drop in the velocity of money, there’s been a serious discussion of an impending deflationary cycle. Deflation meaning that the value of your dollar actually increases, which should theoretically promote hoarding and decrease the value of assets.

But, a top macro analyst recently suggested that a deflationary “wave” could help Bitcoin in the longer run. Here’s how.

Signs of Deflation

Over the past few weeks, due to the mandatory lockdown put in place around the world, the demand for goods and services has fallen off the face of the Earth, epitomized by the collapse of certain oil barrels to $0, even negative prices. Seriously.

With this, it is clear that deflation, which is caused by a large decrease in demand or the velocity of money, is on the horizon.

The issue is, to stave off deflation and a brutal recession, the Federal Reserve and the world’s central banks and governments are being forced to activate every monetary measure they have in their power to keep the gears of the economy moving.

According to Raoul Pal of Global Macro Investors, with this in mind, “that might mean the Fed will do the unthinkable […] and go to negative rates,” before pointing to charts that show the Federal Funds and 10-year Treasury Bond yields are on the verge of heading negative.

Regardless, he seemed certain that deflation is coming, calling the chances of a negative CPI (inflation measure) reading “very high.”

Could Be Huge For Bitcoin

Again, while the main thesis around Bitcoin investment is to stave off the inflation of fiat dollars, a deflationary event could seriously benefit Bitcoin, analysts say.

Pal, for instance, explained that with the current macro backdrop “Dollars, Gold, and Bitcoin make the most sense,” adding that he is positioning his portfolio for 18 months to 36 months out, seemingly suggesting he doesn’t expect deflation to happen just yet.

Pal didn’t expand on his points, but it’s easy to see why he has a growing interest in gold and Bitcoin considering what he said.

Firstly, negative interest rates decrease the opportunity cost of owning assets that yield 0%, such as gold and Bitcoin. Why hold a bond yielding -0.5% a year when you could hold a scarce asset with room for upside that yields 0%?

And secondly, Jeff Booth, a Canadian technology entrepreneur and author of The Price of Tomorrow, suggested in a recent interview with Real Vision that deflation is likely to dramatically worsen the world’s debt load. Why?

Well, despite rates being zero or even negative, a deflationary environment would mean that the real value of debt, most of which was accumulated in the inflationary environment of the early-2000s or 2010s, would increase, leaving many debtors with a bigger and bigger hole to dig out of.

In other words, the chance of defaulting on debt should increase in a period of deflation, which in turn may erode trust in institutions, forcing individuals to seek alternatives like gold and Bitcoin, Booth said in the interview.

The post Top Analyst Believes Bitcoin Could Benefit From a Period of Deflation appeared first on Blockonomi.

Global Finance Authority Urges U.S. to Step Up Crypto Regulation

Crypto

Even with the coronavirus outbreak, 2020 still seems to be the year where crypto will become seriously regulated.

Case in point: At the end of March, the Financial Action Task Force (FATF) explained in its latest report on the state of compliance in the U.S. that it is lacking proper crypto regulation.

FATF Urges U.S. to Follow Its Crypto Guideline

Over the past few months, many of the world’s largest economies have fallen into line regarding cryptocurrency: South Korea passed a bill to more properly regulate cryptocurrencies, Hong Kong is strengthening its Anti-Money Laundering (AML) enforcement, and much more.

Much of this action has been related to the FATF, the global agency whose purpose is to reduce crime enabled through financial systems, crypto included. Last year, the consortium advised all members to follow a guideline it revealed regarding cryptocurrency, which would require the mandatory collection of user data by crypto exchanges and service providers for large transactions.

According to the March report from the FATF, the U.S., while “largely compliant” with the guideline, is not there yet, with there remaining “minor deficiencies”:

It is not entirely clear whether the current approach is sufficiently risk focused, especially since only 30% of all registered CVC [convertible virtual currencies] providers have been inspected since 2014.

The White House Sees It As a Threat

While these “deficiencies” exist, there are signs that the White House and the rest of the government are focusing on crypto as a serious threat.

Earlier this year, the White House budget proposal for the fiscal year of 2021 suggested returning the United States Secret Service — which actually enforces many financial crimes in America — to the jurisdiction of the Treasury.

The budget proposal suggests that this move will “create new efficiencies” in how the Service investigates potential criminal acts enabled by “digital assets and will “prepare the Nation to face the threats of tomorrow.”

Shortly after this budget was proposed, Steven Mnuchin, the Secretary of the U.S. Treasury, said that the Treasury will soon roll out “significant new requirements” for cryptocurrencies and their respective service providers.

These moves may be expedited by the allegation by the U.S. Department of Justice that Venezuelan President Nicolas Maduro used cryptocurrency to “further illicit criminal activity,” including a purported cocaine trafficking ring run by many Venezuelan officials.

Crypto Adoption Is Coming

As moves have been made to reduce the amount of crime enabled through cryptocurrency, there’s also been a concerted push by American politicians to make the cryptocurrency usable.

Representative Paul Gosar in March unveiled the “Crypto-Currency Act of 2020” whose premise is:

By providing much-needed regulatory clarity about cryptocurrency, we will make it easier for businesses, institutions, and everyday Americans to participate in this growing industry. No more murkiness, uncertainty, or confusion.

The controversial politician explained that this bill is absolutely necessary for America’s primacy in innovation, before adding that there’s no way America should be sitting on the sidelines when it comes to cryptocurrency, for digital assets offer “a way for forgotten and oppressed people to participate in the global economy.”

Also, Representatives continue to promote the adoption of the Virtual Currency Tax Fairness Act of 2020, which would solve the primary issue of tax in spending cryptocurrency for day-to-day transactions, ensuring that small crypto transactions would be exempt from capital gains taxes.

The post Global Finance Authority Urges U.S. to Step Up Crypto Regulation appeared first on Blockonomi.

Trader Who Predicted XRP Would Hit $0.13 Thinks This Comes Next

In the middle of February, when the cryptocurrency market (XRP included) was pumping to multi-month highs, emotions were running high; there was a class of Bitcoin investors who expected their favorite orange coin to rocket past its $20,000 all-time high by the time of the halving, as irrational as that may now sound. So, when a prominent crypto trader shared the below chart, depicting that XRP, then at $0.27, was on the verge of falling by 50% towards a “potential long-term bottom” between $0.13 and $0.15, many shunned the sentiment. But, just a month later, his prediction was proven to be correct when XRP hit $0.13 (and wicked as low as $0.115) in the now-infamous Black Thursday crash, during which all global markets saw a massive hemorrhaging of wealth due to fears about the economic impact of the coronavirus. Here’s what he expects to come next. XRP Could Continue Lower, Accurate Analyst FOrsees According to the same trader who nailed the $0.13 call, XRP is currently in the midst of an Elliot Wave correction, which will likely see the cryptocurrency fall towards $0.08-0.09, then continue lower to $0.05-0.06 to establish a long-term bottom in the middle of 2020. The latter range acted as resistance for the cryptocurrency during 2017’s rally, making it a likely place at which XRP will bottom if it falls to the single-digit cents. $XRP – Primary EW count First target: $0.08-0.09Second target (potential long term bottom): $0.05-0.06 pic.twitter.com/2SsdKebT6T — il Capo Of Crypto (@CryptoCapo_) March 31, 2020 All Eyes On Bitcoin Although the historical precedent of the trader’s calls would suggest XRP is on its way to test that level, a rally in the price of Bitcoin could change that. After all, BTC leads the rest of the cryptocurrency market. And currently, there purportedly are many reasons to be bullish on the flagship cryptocurrency at the moment. As reported by NewsBTC previously, Qiao Wang of Messari, a former institutional trader, recently shared the below image, which shows the Bitcoin order book for Coinbase Pro. BTC order book… While I'm short-term cautious due to macro conditions, it can't get any more long-term bullish than this: pic.twitter.com/snq8ISFMCF — Qiao Wang (@QWQiao) April 2, 2020 Although not representative of other exchanges, it is clear that there are more traders bidding Bitcoin than selling it, with there existing nearly 24,000 BTC worth of orders down to an order price of $2,000 and a mere 4,000 BTC worth of orders up to $12,000. Wang wrote that “it can’t get any more long-term bullish than this,” referencing the data. Furthermore, Peter Brandt, a veteran trader and highly respected analyst, explained that the recent rally in the value of cryptocurrencies has allowed Bitcoin to register a breakout pattern, suggesting more upside is on its way. Featured Image from Shutterstock

Bitcoin just hit $7,000: 3 factors that could be behind this explosive move

Bitcoin has shaken off a worsening coronavirus outbreak and record jobless claims in the U.S., rallying past $7,000 just minutes ago as of the time of writing this article, reaching a local high of $7,200.

With the recent surge higher, BTC is up 24 percent from the weekend lows of $5,800.

bitcoin price

Although many have embraced this move, many traders were caught off guard by Bitcoin’s recent strength, epitomized by the $40 million worth of BitMEX short positions that have been liquidated in the past hour, data from Skew.com shows.

There are some leading theories as to what is causing this move, though.

Demand for Bitcoin is booming

The most obvious theory seems to be that there is a rapidly-growing demand for Bitcoin and other cryptocurrencies.

Qiao Wang of Messari, a former institutional trader, summed it up nicely when he shared the below image amid the move, which shows the Bitcoin order book for Coinbase Pro.

Although not representative of other exchanges, it is clear that there are more traders bidding Bitcoin than selling it, with there existing nearly 24,000 BTC worth of orders down to an order price of $2,000 and a mere 4,000 BTC worth of orders up to $12,000. Wang wrote that “it can’t get any more long-term bullish than this,” referencing the data.

Alongside this, as CryptoSlate has detailed over the past few weeks, stablecoin issuers, such as Tether, Binance, Paxos, and Circle/Coinbase, have created hundreds of millions of new coins within the past month.

What’s really going on with Tether’s exploding supply? Crypto exec tells all
Related: What’s really going on with Tether’s exploding supply? Crypto exec tells all

Bitcoin’s Q2 and April seasonality

Another thing that could be pushing the crypto market higher is Bitcoin’s tacit seasonality, which sees it underperform in the first quarter of every year to only start rallying in April.

Case in point: trader RJ recently shared the below chart, which shows that for the past two years, Bitcoin has always rallied extremely strongly during the month of April, gaining 33.6 percent and 28.6 percent in 2018 and 2019, respectively.

btc price

Hype for the halving continues to grow

Finally, it is clear that the hype for the upcoming Bitcoin block reward reduction, known as the halving, continues to grow as it is now under 50 days out, made clear by the growing Google search volume for the term and the social media buzz about the event.

As found by cryptocurrency analyst Nunya Bizniz, Bitcoin rallied strongly into the prior two halvings (marked by the red vertical lines in the chart below). History rhyming will see the cryptocurrency continue to push towards the upside as the halving draws ever closer.

The post Bitcoin just hit $7,000: 3 factors that could be behind this explosive move appeared first on CryptoSlate.

Ethereum Price Goes Vertical, Hits $150 in 20% Rally: Factors to Watch

Following the lead of the stock market, Bitcoin, Ethereum, and the rest of the cryptocurrency market have been ripping higher over the past few hours. In fact, ETH’s short-term chart has gone vertical, with the asset recently surmounting $150 for the first time since the relief recovery on March 19th. While the bullish action has slightly subsided, the cryptocurrency is up 20% in the past two days, having reached $122 during the weekend drawdown. As the majority of this move higher just transpired, analysts are still trying to pick up the pieces of what transpired and what comes next for Ethereum and the rest of the digital asset market. Ethereum Could Continue to Surge Higher, Factors Suggest According to a number of analysts, there remains a strong case for further upside in the crypto market. Prior to the surge to $150, trader Crypto Cactus remarked that ETH was then retesting a “strong resistance level,” the upper bound of the last two weeks’ trading range. The recent surge above the aforementioned resistance level is likely to confirm a support-resistance flip, which will give the cryptocurrency fuel to continue higher. $ETH LTF Update This is it, a major retest of this strong resistance level that hopefully once flipped can shift out bias more bullish. Previously tried to break above this level multiple times since ranging in this region so would be a major S/R flip. 1H looking positive! pic.twitter.com/VaOJa6SLJA — Crypto Cactus (@TheCryptoCactus) April 2, 2020 The outlook for Bitcoin is similarly bullish, which bodes well for Ethereum’s trajectory. Qiao Wang of Messari noted that while he is cautious due to macro conditions in the broader economy, Coinbase Pro’s Bitcoin order book is currently stacked on the buy-side, suggesting strong buying demand for BTC. In fact, as can be seen below, there is approximately 23,000 BTC worth of orders down to $2,000 while there is only 4,000 BTC worth of orders up to $12,000 — a trend that Wang says he “can’t get any more long-term bullish on.” BTC order book… While I'm short-term cautious due to macro conditions, it can't get any more long-term bullish than this: pic.twitter.com/snq8ISFMCF — Qiao Wang (@QWQiao) April 2, 2020 The strong demand for cryptocurrency can be corroborated by the absolute explosion in the quantity of U.S. dollar stablecoins. Per previous reports from NewsBTC, the value of all U.S. dollar stablecoins (USDT, Binance USD, USD Coin, etc.) is on the verge of passing $8 billion — a metric up by 20% in the past month in itself. As to why this is bullish, Charles Edwards, a digital asset manager, noted earlier this year that “major changes in Tether’s market capitalization have led Bitcoin’s price over the last 1.5 years.” Featured Image from Shutterstock